Indices may sport Reits as Sebi eyes liquidity boost

Sebi chief says retail participation in real estate investment trusts remains low

- Subhash Narayan

Units of real estate investment trusts (Reits) may soon be counted as equity and join India’s stock market indices, as the regulator works to attract larger participation from institutions and improve liquidity in these instruments.

The Securities and Exchange Board of India (Sebi) is actively examining the inclusion of Reits in market indices in a phased manner, chairman Tuhin Kanta Pandey said on Friday. While Sebi has taken several steps to make Reits more liquid and retail-oriented, retail participation in these instruments remains low, he noted.

“Sebi will work with all stakeholders to facilitate the inclusion of Reits in indices, through an appropriate glide path. Based on industry feedback, we are evaluating further ease-of-doing-business measures for Reits and InvITs,” Pandey said at the national conclave on Reits and InvITs in New Delhi.